What is the first step I should take to collect a small business debt owed to my company?

A:

Collecting a debt owed to you can be challenging, especially in this economy. However, before you choose to ignore it and report it as a bad debt expense on your taxes, there are things you can do to try to get a debtor to pay you on an outstanding debt. 

These tips include:

• Continue to send bills listing the due date or that payment is due upon receipt.
• Contact the company and speak with someone in the accounting department to find out the situation. 
• Choose to work with an Austin business debt collection attorney.
• Take the debtor to small claims court.
• Attempt arbitration or mediation.
• Report the debt to the state’s credit bureau.

It may be best to work with an Austin debt collection lawyer for help collecting a debt. An attorney also can help you establish a company-wide procedure for dealing with future debtors and debt collections. This would include the course of action, and at what point that action should be taken. 

For help creating a procedure for dealing with debtors in Texas that will protect you and your company, speak with an experienced attorney. Call the Posey Law Firm toll-free at 888.269.1962 or locally at 512-646-0828 today. As our way of introducing the firm, we will offer a confidential and free case consultation. Contact us to find out how we can help you collect on an outstanding debt.

Jake Posey [email protected]

Connect with me

• Facebook
• Twitter
• LinkedIn